Celsius Inks $1 Billion Debt Financing for Alani Nu Purchase

Celsius Holdings, Inc. (CELH) has announced a significant strategic move by securing $1 billion in debt financing to fund the acquisition of Alani Nu, a female-focused energy drink brand. This transaction is expected to create a leading better-for-you, functional lifestyle platform, combining two growing, scaled energy brands with clear category tailwinds. The acquisition is expected to be accretive to cash EPS in the first full year of ownership, with $50 million in run-rate cost synergies anticipated over two years post-close.

The net purchase price of $1.65 billion represents an attractive valuation of less than 3x 2024A net revenue and approximately 12x fully synergized 2024A EBITDA. The transaction is expected to close in Q2 2025.

The acquisition of Alani Nu aligns with Celsius' long-term growth strategy and target market segments in several ways:

1. Expanding into the female-focused market segment: Alani Nu is a female-focused brand, catering to Gen Z and millennial consumers. This acquisition allows Celsius to tap into this growing market segment, which is currently underrepresented in its portfolio. By combining Alani Nu's strong brand positioning with Celsius' distribution network, the company can reach more female consumers and drive category growth.
2. Strengthening the functional beverage platform: The acquisition creates a leading better-for-you, functional lifestyle platform that caters to health and wellness trends. Alani Nu's functional beverages and wellness products complement Celsius' existing offerings, allowing the combined entity to provide a broader range of products that meet consumer demand for functional and better-for-you options.
3. Accelerating category growth: Alani Nu's impressive 78% year-over-year growth and recent market share gains to 4.8% demonstrate strong brand momentum and consumer acceptance. By acquiring Alani Nu, Celsius can capitalize on this momentum and accelerate category growth through targeted innovation and expanded consumer reach.
4. Enhancing distribution and market penetration: The acquisition is expected to provide the opportunity for additional, adjacent category expansion, ultimately enabling Celsius to reach more people, in more places, more often. The added breadth of the combined platform is expected to further strengthen the company’s position with ample resources for ongoing growth investment.

In conclusion, Celsius' acquisition of Alani Nu, facilitated by the $1 billion debt financing, is a strategic move that aligns with the company's long-term growth strategy and target market segments. The acquisition is expected to create a leading better-for-you, functional lifestyle platform, driving category growth and enhancing distribution and market penetration. The transaction's attractive valuation and anticipated synergies make it an appealing opportunity for Celsius and its shareholders.